Bond is NOT equivalent to a fixed deposit. Bonds are mainly for medium and long term investment, not for short term speculation. You should be prepared to invest your funds in Bond for the full investment tenor. Any redemption prior to Maturity Date (unless called by the Issuer) is subject to marked-to-market cost and may result losing part of or all the Principal Amount. The returns on bonds and fixed income securities are driven by several factors including but not limited to market risks, issuers' credit risks, liquidity risks and call risks.
Margin Call Risks
If you are financing your bonds or fixed income securities using margin financing, a margin call might be triggered in cases of adverse price movement or collateral valuation downgrade due to adverse credit events. You will be required to provide additional cash or marginable securities as collateral or liquidate positions within the specified period, failing which we will automatically liquidate outstanding positions. If the OTC bond position has to be liquidated, it will be liquidated per tranche of either SGD250,000 for SGD issues or USD200,000 (or equivalent) for other currency issues.
This message is for general knowledge or information only. It is not an offer or invitation to buy or sell securities, futures or other products or services. Our products or services vary in different jurisdictions, subject to their respective terms and conditions and the licences our affiliates and us hold. This message is not an advice or recommendation for any financial planning, investment, legal, tax or other purposes and, accordingly, no responsibility or liability is assumed by us or our affiliates, whether directly or indirectly, from any person taking or not taking action.
Investment products are not bank deposits, nor obligations of, nor guaranteed by HL Bank Singapore, or any of its affiliates or subsidiaries, and are subject to investment risks, including the possible loss of the principal amount invested. Investment products are not insured products under the provisions of the Deposit Insurance and Policy Owners' Protection Schemes Act 2011 of Singapore and are not eligible for deposit insurance coverage under the Deposit Insurance Scheme.
Past performance is not indicative of future results and prices and values can go up or down. Investors investing in funds denominated in non-local currency should be aware of the risk of exchange rate fluctuations that may cause a loss of principal when foreign currency is converted back to the investors' home currency. Investors should therefore determine whether any foreign currency investment is suitable for them in the light of their personal investment objectives, financial means and risk profile.